MSFT Mixed With Sideways MarketThe market is mixed in early trading as retailers post decent gains and jobless claims fell as anticipated. Shares of MSFT are up marginally with technology. Upcoming catalysts include the company's Analyst Day at its new developer conference (BUILD) on September 14; Windows Phone 7 / Mango rollout and adoption with hardware partner Nokia (see below); strides against current market leaders in cloud computing; any entrance in the tablet market; making money in the online business, including integration of Skype and improving the search / display business; and continued evolution of Kinect and next generation Xbox console. The stock currently trades at 7.6x Enterprise Value / TTM Free Cash Flow.

Microsoft's Problem Is Its Own DNA (Seeking Alpha)The computer world has changed in fundamental ways and Microsoft is being left behind. That said, the company has many of the pieces needed to compete in this new world. It has a mobile division; it has a cloud; it offers an extensive set of online services. No other computer vendor has as popular a gaming platform as the Xbox. It has cash with which to control production and it has distribution channels. What it seems to lack is both the will to change how it does business and the knowledge of what that entails.

Microsoft's Dividend Should Be A Payout Ratio (Barron's)Ticonderoga Securities analyst Neil Herman believes that at Microsoft's annual Analyst Day (in September this year), which usually offers an increase in the dividend, should be used to inaugurate a new dividend policy that is based on "payout ratios." This could double Microsoft’s dividend and Herman thinks there’s still "considerable room to grow." For the top 12 large-cap dividend-paying companies, the average free cash flow payout ratio is 62% (as a percentage of trailing cash flow). Microsoft is only 22%.

The Brain Drain From Older Tech Continues (Various)Will the last one out please turn off the lights:

Nokia's Head Of Services Departs (GigaOM): Tero Ojanpera, Nokia’s EVP of Services, is leaving the company after 21 years. He is going to a new investment fund, Vision, that will fund applications and services for the Nokia and Windows Mobile 7 platforms. The idea is "part of an ongoing strategy to broaden application and games development for Nokia's ecosystem," otherwise known as Windows.

Microsoft Enterprise Head Resigns (Business Insider): The head of Microsoft's enterprise and partner group, Simon Witts, is leaving after 18 years. His departure was announced in an internal email from Chief Operating Officer Kevin Turner this morning. Witts was in charge of Microsoft's sales to its largest customers (enterprises) as well as its relationships with partners. He joined Microsoft in 1993 from IBM.

Tudor Investments Cuts Its Stake In Microsoft (Seeking Alpha)Tudor Investment Corporation cut it's stake in Microsoft this last quarter by 400K shares. According to consensus estimates, Microsoft's top line is expected to grow 6.80% in the current year and 6.90% next year. At 8x-9x current fiscal year EPS, that's pretty attractive. At these levels, the market isn't pricing in some of the positive initiatives the company is taking which could drive meaningful growth (Windows 8, Office 365, Nokia's WP7 phones).